The three year exemption from paying property tax is recognized for a "first purchase" of a house that is registered as a main residence and a moratorium of the tax has been established until the end of the year.
From a statement issued by the Ministry of Economy and Finance:
The President of the Republic, Juan Carlos Varela, today passed a Law that proposes the most important integral reform of the Real Estate Tax in the last 40 years and establishes a greater fiscal balance, which benefits owners.
The association of private companies proposes applying a single rate of 0.5% on the surplus over $120 thousand for all property that is a main residence.
Panamanian businessmen believe that thebillthat the government will be presenting, to raise the value of the houses that can be exempted from the payment of the property tax up to $120 thousand, is not equitable, and argue that the proposed rates are very high.
The government will be presenting a bill in the Assembly that raises the value of housing that can be exempted from payment of property tax up to $120 thousand.
From a statement issued by the Ministry of Economy and Finance:
The Ministry of Economy and Finance (MEF) presented a bill that establishes the most significant reduction of property tax in the last 40 years.
The private sector has requested that the debate on the bill to reform the tax code be suspended and changes made to the way property values are updated and the tax on them is calculated.
From a statement issued by the Chamber of Commerce, Industries and Agriculture of Panama:
PROPERTY TAX REQUIRES CONSENSUS
In the Chamber of Commerce, Industries and Agriculture of Panama, the same as other private-sector groups, we have respectfully requested suspension of the debate of Bill No. 43, "which amends articles of the Tax Code and other provisions" related to property tax.
A proposal has been made to change the tax exemption bracket from over $30,000 to $120,000 and for the rate for amounts above that figure to be set at 0.25%.
Although the process of cadastral appreciation in the capital city was suspended in November 2013, the private sector claims that the rule remains in effect and proposes amending it in order to minimize the impact of appraisals in the payment of property tax.
The recent package of tax regulations passed in Guatemala includes modifications in determining the taxable value for the sale of a property.
In an article in Prensa.com the consultant Manuel Salguero states that "The consequence of these new laws and reforms will be having to pay more money in taxes for the purchase of housing solutions. The impact to property values will be seen in the short term, because prior to this houses have usually been declared as much less in the registry, and buyers and sellers adjusted their values to this small amount of taxes ."
This was announced by President Martinelli at the opening of the XXIV edition of Capac’s construction trade fair ‘Expo Habitat.’
The 20-year tax exemption on land tax and building permits has not been applied since June 2009.
"Neither will it be applied to those projects which have not registered by the end of this year", added Prensa.com.
President Ricardo Martinelli invited construction companies and project developers to meet with the new Minister of Housing and Land Management, José Domingo Arias.
The government will put out to tender a contract for appraising real estate in Punta Paitilla.
In order to update its real estate registry, the Ministry of Economy will hire companies to perform a massive number of appraisals in the metropolitan area. Some 12.000 lots will be evaluated.
“The discussion process was started with the participation of 10 interested companies”, reported Prensa.com, adding that the area of Paitilla was divided in 11 sections, and one company will appraise each.
Today, a new tax for residences worth more than $170.000 (¢100 million) comes into effect in Costa Rica.
The law, dubbed 'Solidary Tax' ('Impuesto Solidario'), will tax luxury houses for ten years.
"Every three years, on the first 15 days of January, homeowners will have to update the fiscal value of their property by means of an electronic statement. It won't be deductible from income taxes", reports Nacion.com.
The tax reform being discussed includes important modifications to property taxes.
Currently, this tax can be paid in three payments, but with the new regulation, it must be done in one lump sum.
"The alternative fee would be 1% over the taxable base (the value of the land plus built improvements)", reports Prensa.com. "With these modifications, the owner of a $55.000 house paying a preferential fee of $185 a year would have to disburse $250".